Keep your finger on the legal world's pulse
4th April 2025
 
THE HOT STORY
Kirkland & Ellis seeks White House reprieve
Kirkland & Ellis, the largest law firm in the U.S. by revenue, is in discussions with the White House to prevent an executive order that could impact its operations, reports the Wall Street Journal. The firm, which has some 4,000 lawyers and brought in about $9bn last year, is eager to avoid a conflict with the White House and has hired a lobbyist as part of its efforts, sources with knowledge of the situation have said. Meanwhile, Milbank, one of New York's elite law firms, has struck a deal with Donald Trump and agreed to “not engage in illegal DEI discrimination and preferences” or “deny representation to any clients on the basis of . . . political affiliation." The deal, which pledges to spend $100m on initiatives backed by the firm and Trump, avoids “what could have been an unnecessary confrontation,” Milbank chair Scott Edelman said.
FIRMS
GOP-led states demand 20 law firms disclose DEI practices
Attorneys general from 12 Republican-led U.S. states have sent letters to 20 major law firms demanding information about their diversity, equity and inclusion employment practices. The letters build on a similar request to the same firms by the U.S. Equal Employment Opportunity Commission, the agency that enforces federal laws banning workplace discrimination. Andrea Lucas, acting EEOC chair, warned last month that the firms' employment policies related to DEI may be illegal. The letters said that information in the EEOC's request "indicates that your firm may have acted in violation" of federal and state law.
EMPLOYMENT LAW
EEOC chief shifts focus to investigating DEI
The acting chief of the Equal Opportunity Employment Commission (EEOC) is prioritizing President Trump's campaign against diversity, equity, and inclusion programs. Andrea Lucas has received support from the Trump administration, which has issued executive orders targeting DEI initiatives. Critics, including former Democratic EEOC officials and civil rights groups, argue that Lucas is overstepping her authority and misleading employers about the legality of DEI practices. They have urged employers to be wary of her directives and guidance. The EEOC's recent "technical assistance" documents warn that certain DEI practices may violate Title VII of the Civil Rights Act. “Far too many employers defend certain types of race or sex preferences as good, provided they are motivated by business interests in ‘diversity, equity, or inclusion.',” Lucas said in a statement announcing the new technical assistance on DEI.
Fired HHS staff may be asked to keep working
The Department of Health and Human Services (HHS) has said that thousands of employees who have been dismissed from the department and the public health agencies it oversees, including the FDA, CDC and National Institutes of Health, may be asked to temporarily continue working for two months. The department earlier this week began mass layoffs, with the aim of firing 10,000 employees in accordance with a broader plan by the White House to shrink the federal government. Staffers said they were given "reduction in force" notices that said they were being placed on administrative leave effective April 1 and until June 2.  "All employees affected by the reduction in force may be asked to temporarily work until their government service ends on June 2," said HHS spokesperson Andrew Nixon. "This decision is focused on ensuring that the transition is as seamless as possible, minimizing any disruption to the agency's mission and operations. HHS fully supports this approach, which aims to maintain public health services while managing the reorganization process effectively."
LAWSUITS
Trump tariffs challenged by conservative legal group
Conservative legal group New Civil Liberties Alliance (NCLA) has filed what it says is the first lawsuit seeking to block Donald Trump's new tariffs on imports from China, arguing that the president is overstepping the limits of his authority. The group is representing a Florida-based stationery business called Simplified, which claims it will suffer “severe” harm from his “unconstitutional” tariffs on China. “By invoking emergency power to impose an across-the-board tariff on imports from China that the statute does not authorize, President Trump has misused that power, usurped Congress’s right to control tariffs, and upset the Constitution’s separation of powers", NCLA senior litigation counsel Andrew Morris said in a statement. Trump has declared an emergency over China's alleged complicity in the U.S. opioid epidemic, framing tariffs as a negotiating tool for ending the influx of the drugs.
LAPD sergeant wins $4.5m lawsuit
Randy Rangel, a former LAPD sergeant, has been awarded $4.5m by a Los Angeles County jury after he faced retaliation for reporting overtime fraud within the department. Rangel, who served 32 years before retiring in 2023, claimed that his troubles began in 2018 when he reported Sergeant Humberto Najera for overreporting overtime. Despite his complaints, no investigation was initiated, leading to a campaign of harassment against him. The LAPD has faced numerous lawsuits over similar issues, with City Controller Kenneth Mejia noting that over $107m has been paid this fiscal year for police-related cases. Officials in the department are said to be examining the issue of growing legal payouts, and hope to figure out ways to clamp down on behavior that can precipitate such lawsuits. “The culture was terrible. I mean it was all about greed,” observed Heather Rolland, a former Transit Services detective. “It's a good ol' boys club.”
LAW
New Jersey introduces law targeting organized retail theft
New Jersey Gov. Phil Murphy has signed a new bill aimed at increasing penalties for organized retail theft, which he described as “highly professional, highly organized criminal enterprises.” The law, which received unanimous support in the state legislature, classifies assaults on retail employees as aggravated assault, potentially leading to five years in prison. It also imposes harsher sentences for repeat shoplifters and those leading retail crime rings. Murphy noted that such thefts lead to price increases for consumers, saying: “This is not about casual shoplifting.” However, civil rights advocates, including Jason Williams from Montclair State University, question the effectiveness of tougher penalties, suggesting that the narrative of rising thefts may be exaggerated. A 2024 report by the Brennan Center for Justice indicates that national crime data does not support claims of increased larceny.
APPOINTMENTS
Hogan Lovells strengthens litigation team
Hogan Lovells has welcomed a team of four disputes partners from Kramer Levin in Washington DC, enhancing its commercial litigation practice. The new members — Gary Orseck, William Trunk, Jennifer Windom, and Matthew Madden — bring extensive experience across various sectors, including healthcare and financial services. Des Hogan, global leader of the firm’s litigation, arbitration, and employment practice group, said: “The quartet adds significant firepower to our litigation team.”
Eric Moran joins Greenberg Traurig
Eric Moran has joined Greenberg Traurig as a shareholder in its litigation and white collar defence and investigations practices. He brings expertise in advising companies and executives on complex civil and criminal matters across various sectors, including financial services, health care, consumer products, and government contracting. Previously, Moran was with Epstein Becker Green.
REGULATION
PCAOB faces uncertain future ahead
The future of the Public Company Accounting Oversight Board (PCAOB) is in question as the Trump administration signals potential deregulation. Paul Atkins' nomination as SEC chair is seen as a move that could reshape the PCAOB's leadership. Lara Long, managing director at Riveron, said: "Republican control of the White House and Congress is a strong sign that regulatory actions will either be reversed or will significantly decline." Recent data from Cornerstone Research indicates a significant increase in PCAOB enforcement actions, with over $86m in penalties issued between 2015 and 2024. However, experts predict that changes in leadership and ongoing legal challenges may hinder future enforcement. "We expect fallout from Jarkesy and similar constitutional challenges . . . to dramatically shift the enforcement landscape moving forward," said Alison Forman of Brattle Group.

 

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